How to Spark A Conversation Revolution - AND Keep Your Job

1. How To Spark A Conversation Revolution — AND Save Your Job Charlene Li Founder, Altimeter Group Co-author of “Groundswell” 1

2. “Markets are conversations.” The Cluetrain Manifesto 2

3. “Conversations are open-ended.” David Weinberger, Co-author The Cluetrain Manifesto 3

4. How most marketing works 4

5. Focus on relationships, not technologies What kind of relationship do you want? Transactional Occasional Impersonal Short-term Passionate Constant Intimate Loyal 5

6. Engagement Pyramid Focus on the bottom • Edit a wiki • Moderate a forum • Write in a blog – 21% • Upload a video – 18% • Rate a product or service • Comment on a blog post • Write in a discussion forum • Share online video – 37% • Update profile – 35% • Upload photos – 23% • Watch online video – 59% • Read blogs – 48% • Download podcasts – 23% Base: Global active Internet users (uses the Internet every day/every other day Note: Percent of active Internet users that do this at least weekly Source: Universal McCann Social Media Tracker Wave 3, March 2008

7. Start with clear goals 7

8. Oracle’s big gamble Oracle put a roadblock on its own home page to encourage feedback/ideas Executives participated in the online community 8

9. Let’s talk about taxes

10. Wells Fargo Wachovia Blog

11. Dialog with Frank Eliason, Comcast

12. Dawn supports with reviews 12

13. Starbucks innovates with customers 50 employees participate in the process, representing every department

14. Getting Started a.k.a. Convince the Curmudgeon 14

15. #1 Assess your company • How open is your culture? • Where do conversations naturally take place today? • What barriers can you simply not cross? • How thick or thin is your “corporate membrane”? 15

16. “Who owns community?” is really three questions Who will pay for the efforts? Who benefits the most? Who can inspire and lead? Who can clear the roadblocks? Who is best able to run the project? Who is closest to the audience?

17. #2: Start small Listen first Experiment

18. #3 Use the right metrics Your goals determine your metrics Use the same metrics as your marketing goals 18

19. Example “micro” metrics 19

20. Higher order metrics to consider Net Promoter Score How likely are you to recommend this to someone you know? Lifetime Value Lifetime revenue Cost of acquisition Cost of retention Customer referral value (CRV) 20

21. #4: Get the help you need See a list at wiki.altimetergroup.com 21

22. How to find good help • Focuses on relationships, not campaigns. • Uses social media successfully themselves. • Commits resources to learning and training. • Has learned from their mistakes. • Respects and is humbled by the medium. 22

23. #5 Prepare for failure Identify the top 5-10 worst case scenarios. Develop mitigation and contingency plans. Prepare everyone for the inevitable failures. 23

24. Wal-mart failed many, many times

25. Buyer blog hit the right note

26. 26 Photo: Kantor, http://www.flickr.com/photos/kantor

27. An essential tool to have

28. Summary • Determine the kind of relationship you want to have with your audience. • Start the conversation slowly, with one simple goal. • Plan for a transformation of your organization.

29. May the groundswell always be with you. Charlene Li Altimeter Group charlene@altimetergroup.com blog.altimetergroup.com Copyright © 2008 Altimeter Group